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K-12 Three-Year Budget (Senate Bill 1044)

The school aid budget resulted in a per pupil basic foundation allowance of $5,700 in 2000, $6,000 in 2001, $6,300 in 2002 (with a $200 equity payment added that year), and $6,700 in 2003. Senate Bill 1044 has been approved by the House and Senate, and now awaits the Governor’s signature. He has the option of complete or line-item vetoes. Listed below are the highlights of the budget:

• Foundation Allowance - increased by 5.3%, 5.0%, and 3.1%. Click to see spreadsheet for your district.
• ISD’s General Operation Funds - increased by 5.3 %, 5.0%, and 3.1 %.
• Minimum Days and Hours of Instruction - required as in current law (1098 for next year), but eliminates growth in the number of hours required after 2001. Beginning in 2000 - 2001, a district may count up to 51 hours of professional development for teachers toward the required 1098 hours of pupil instruction.
• Declining Enrollment Districts (with memberships up to 1,550) - allowed to average their 3 most recent year membership counts.
• GF/GP Contribution to the School Aid Fund - reduced by $35 million in 2000-2001, by $215 million in 2001-2002, and reinstates the $420.6 million GF/GP for 2002-2003.
• Cash Flow Payment Program - created for districts at $50 million.
• Infrastructure Program - created at $34 million.
• School Construction Interest Payments - appropriated $18 million per year.
• Foundation Allowance Funding - allowed to follow students if they move to other districts after being counted in a different district on count day. Required a minimum number of 25 students or 1% before this adjustment occurs.
• At-Risk Programming - appropriated an additional $25.2 million to reflect the increases in the foundation allowance and to remove the estimated proration.
• Class Size Reduction - increased money by $10 million, and maintains the program for 5 years.
• Districts Taken Over or Reconstituted by the State - Added $15 million payment for 2000- 2001 for per pupil grants to any. (Currently only Detroit Public Schools qualify.)
• Special Education Blue Ribbon Committee - deleted their study and recommendations on issues concerning special education.
• Schools of Choice - allowed for within contiguous ISDs.
• All Students Achieve Program - created and included: 1) Parents as Teachers Program to assist with parenting skills; 2) Pilot Reading Improvement Grant Program ($75 million); 3) $10 million for coordinating counseling services and tuition grants for degrees in counseling.
• Summer School Programs - appropriated $38 million for 2000 - 2001 and 2001 - 2002, and $50 million for 2002 - 2003 for students in grades 1 - 4 with low standardized test scores.
• School Readiness Funding - increased to $72,6 million which serves 22,000 children at $3,300 per child.
• Gifted and Talented - increased appropriations by $1 million annually.
• Career Preparation Implementation Grants Funds - to be distributed according to the proportion of the workforce development boards geographic areas in relation to the K-12 enrollment. Also, Quality of Career Preparation will be determined by newly created Evaluation Advisory Groups.
• Professional Development - appropriated $10 million for professional development not scheduled during pupil instruction and is intended as reimbursement for the full per diem compensation paid.
• Golden Apple Awards - required teachers to pool their $1,000 allocations under for school improvements decided on collectively.
• Teacher Technology Initiative - provided computers and remote Internet access to teachers. Districts can use funding for technology improvements and/or professional development in technology if computers are not desired by the staff.
  

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• Operational Funding - increased by 6.0% and distributed the increase as 3% across-the-board, and 2.5% by formula. Henry Ford Community College - $22,296,069, Kirtland Community College - $3,023,951, Lansing Community College - $31,686,670, and Wayne County Community College - $17,053,189.
• At-Risk Student Success Program - increased at-risk student success program funding by 3%, for a total of $107,537.
• Postsecondary Access Student Scholarship (PASS) - implemented new program that essentially will provide free college tuition for eligible participants by financing the difference between tuition and all other scholarships and grants for full-time, degree seeking students under 22.
• Tuition Restraint Initiative - removed language included by the Governor to reduce fiscal year 2001 appropriations by 1.5% for colleges that raise tuition and fees above 3%.
• Economic Development Job Training - statement of legislative intent that at least 70% of the economic development job training grant money be awarded to community colleges.
• Staffing Patterns - removed language added by House directing the Department of Career Development to coordinate with various stakeholders to discuss effect of part-time teachers and educational instruction.

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• Increased per-student funding: Eastern Michigan University ($4,788), University of Michigan-Ann Arbor ($9,767), Wayne State University ($10,759), and Michigan State University ($9,801).
• Provided a 5% increase across-the-board for public universities.
• Appropriated $110 million for Michigan Merit Award Program to handle an estimated 40,000 awards.
• Required 1.5% base reduction for any university increasing tuition more than 4.0%.
• Increased supplemental funding by 3% to help pay for infrastructure improvements, technology and equipment purchases, and maintenance for the current fiscal year ending September 30.
  

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• the school district administer nationally recognized norm-referenced test (or another assessment approved by the superintendent of public instruction at the request of the school district or public school academy) each school year in grades 1 - 5;
• if a school is designated for participation in the National Assessment of Education Progress (NAEP) program, the school would be required to participate as designated. An elementary school that did not comply with these requirements would not be accredited; and
• a school district would have to offer pupils in grade 3, who failed to meet standards for basic literacy skills by the end of that school year, the opportunity to attend summer school before grade 4, in order to study language arts and math. (For the purpose of this provision, a pupil's literary and math skills would be measured by either the Grade 4 MEAP test, the MLPP, or another assessment adopted by the school district for this purpose, as approved by the superintendent of public instruction.)
  

• the Michigan Virtual University would develop, implement, and operate the Michigan Virtual High School at the beginning of the 2000- 2001 school year; and
• course offerings would include but not be limited to all of the following: information technology courses; college level equivalent courses; courses and dual enrollment opportunities designed for college-bound juniors and seniors; at-risk programs and services; general education development test preparation courses for adjudicated youth; special interest courses; and professional development programs and services for teachers.

• if a person earned a provisional teaching certificate, and that certificate lapsed before the person has completed the requirements for a professional education certificate, and if a school district applied to the department on that person's behalf for another provisional teaching certificate within ten years after the person's initial provisional teaching certificate had lapsed, the department would be required to issue a new provisional teaching certificate to the person;
• this new provisional teaching certificate would be valid for two years, during which time this person must complete the requirements for a professional education certificate, and the department would have to credit toward the requirements for the professional certificate any continuing education or other requirements completed while the person's initial teaching certificate was valid;
• this would apply regardless of whether the person's provisional teaching certificate lapsed before or after the effective date of the bill; however,
• this provision would not apply to a person convicted of certain crimes that, under the code, may result in suspension of a teaching certificate.

• authorizes the designee of a school board to expel a student from the school district, and also gives to those who have the authority to expel students the option of suspending them;
• specifies that if a student in grade 6 or above commits a physical assault at school against another student and it is reported, the school board or the designee of the school board would have to either suspend or expel the pupil from the school district for up to 180 school days;
• specifies that if a student in grade 6 or above commits a verbal assault and it is reported to a school official, or if a student in grade 6 or above makes a bomb threat or similar threat directed at school property or a school event, the school board or its designee has to suspend or expel the pupil from the school district for a period of time as determined in the discretion of the school board; and
• retains the current parental notification of school crime reports, but requires that the report be kept current on a weekly basis and be made available at least annually.

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• Holds a valid teaching certificate with a school counseling endorsement.
• Has at least five years of experience serving in a school counseling role in another state within the immediately preceding seven-year period and had successfully completed the Department of Education's Guidance Counselor Examination.
• Holds a master's degree awarded after completing an approved counselor education program that included skills and content areas specified in the bill; have completed the Department's Guidance Counselor Examination; and, has been recommended by an approved school counselor education program to provide services as a school counselor.

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• Allow an eligible student to enroll in, and receive payment by his or her school district of all or part of eligible charges for, an eligible course offered by a career and technical preparation program at a postsecondary educational institution;
• Provide that an eligible student would be responsible for charges not paid by the school district, and for repayment of charges paid by the district if he or she did not complete a course;
• Allow an eligible student to receive high school credit or postsecondary credit, or both, for an eligible course;
• Require school districts to provide information to all high school students on the career and technical preparation enrollment options, and to provide counseling services to eligible students and their parents; and
• Require intermediate school districts to collect certain information and report it to the Department of Education, and impose reporting requirements on the Department of Career Development.

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• Any person would be allowed an income tax credit of up to $5,000 ($10,000 for couples) for deposits into the Michigan Education Savings Account Program.
• The fund could accumulate to $125,000 without tax on the earnings as long as withdrawals are used to pay higher education costs, including trade schools.
• The money could be used for tuition, fees, books, supplies, required equipment, as well as room and board in some cases.
• A person could establish one or more education savings accounts for one or more designated beneficiaries regardless of age.
• This account could be established for as little as $25 cash or $15 per pay period for a payroll deduction plan.

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